Executives at Royal Mail are deferring or waiving bonus payments even though the postal organisation has made a profit for the first time in four years, it was announced today.

Chairman Allan Leighton is to defer his entire bonus, worth £144,000, until the group meets quality of service targets in the 2004/5 financial year. If the targets are not reached he will lose his entire bonus.

The news came as Royal mail announced a profit of £220m in 2003/4 compared to a £197m loss in the previous year. But it missed its target for delivering letters on time.

NRoyal Mail has demanded an apology from Channel 4 over a programme alleging theft among postal workers, saying it had uncovered "serious doubts" over the claims.